I have a very good score credit and I have been very punctual and responsible with all my bills for all these years, but since October 2011 I’m jobless, however I have been paying all my bills on time with my savings . I still have some cash to continue searching for a job and very basic necessities. I have a BMW car lease that I cannot afford any more; I tried to look for someone to take over the lease, no success.
What is going to happen if I return the car with my credit score? and how that is going to affect me when I’m back to work and look for rent a new apartment and contract basic utilities services?.”
The lease is the same as any agreement which you have agreed to and obligated for. If you default the leaseholder will go after you for the balance owed, as determined by the lease agreement.
While you do currently have good credit, I fear that it is because you’ve been draining your cash to maintain a lifestyle your income may no longer support. The lease issue is frankly the least of your worries here. The bigger worry is if you will run out of cash and be dead broke and not be able to afford any options or solutions to move ahead with a better financial future.
My advice would be to draw a line in the sand before you run totally out of money. If you have not secured a new job by that time then you need to consider handing the leased car back and following that up with a bankruptcy filing to terminate your past financial obligations so you can get a legal fresh start and second chance.
Filing bankruptcy is not the end of the world. In fact most of the assumptions about bankruptcy are just flat wrong.
Right now the bigger concern is not about your credit, which can be easily rebuilt following bankruptcy using this guide, but what is the plan here when you’ve spent through your savings and haven’t found a new income yet? Trust me, that’s the much worse outcome.
I’d suggest you first read How to Get Out of Debt. The Honest and Unvarnished Truth to get some perspective on the current situation.
I also think my free ebook “The Beach Misses You” might resonate with you as well.
Bottom line, my recommendation is that you logically deal with the debt now before it become a dire situation and you are homeless. The rest we can deal with moving forward.
Please post your responses and follow-up messages to me on this in the comments section below.